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Water Industry Deals and News - January 2018

The O’Melveny Monthly Water Report includes select transactions and other items of interest occurring during January 2018. Please contact any member of the O’Melveny Water Practice for additional information on any of these items or any related items.

Overview

Tracked deal volume in January 2018 centered on acquisitions, with activity in China, Germany, UK, US, and Vietnam. Power generation assets featured in several of the transactions, in particular renewables like hydro, solar, and anaerobic digestion. Water supply and treatment companies in China and Vietnam were involved in acquisitions, while transactions in the United States involved a consumer water bottling business, a water treatment company, and oil field service operations. Additionally, a Kenya-based start-up that harvests ambient water from the air launched a crowdfunding campaign.

Mergers & Acquisitions

Zhejiang Water Conservancy & Hydropower Investment Corporation Group

Zhejiang Water Conservancy & Hydropower Investment Corporation Group

January 2, 2018

Zhejiang Water Conservancy & Hydropower Investment Corporation Group agreed to acquire a 51% stake in Jiayuguan Chint Photovoltaic Power Generation Co., Ltd. from Zhejiang Chint New Energy Development Co., Ltd. for approximately $5.7 million. In related transactions, Zhejiang Water Conservancy & Hydropower Investment Corporation Group agreed to acquire 51% stake in 8 photovoltaic power station companies in Gansu and Ningxia region. The combined deal value for the transactions is $84.9 million.

Ecolab

January 2, 2018

Ecolab Inc. (NYSE:ECL) acquired Cascade Water Services, Inc. Cascade Water Services will become part of Ecolab’s water business. Cascade Water reported sales of $35 million in 2017. Cascade Water Services is one of the largest privately owned water treatment companies in the US. Ecolab is a global provider of water, hygiene, and energy technologies and services.

Life Water Company GmbH

January 3, 2018

Brita Ionox Deutschland Gmbh acquired Life Water Company GmbH. BRITA Ionox, is a subsidiary of BRITA GmbH and a large brand in the segment of water dispensers for offices, schools and especially hospitals, a sector where Life Water focuses.

Chongqing Jinke Real Estate Development Co., Ltd.

Chongqing Jinke Real Estate Development Co., Ltd.

January 3, 2018

Chongqing Jinke Real Estate Development Co., Ltd. agreed to acquire Chongqing Three Gorges Water Conservancy Industrial Development Co., Ltd. for approximately $34.6 million. Chongqing Three Gorges Water Conservancy is a China-based company primarily engaged in the generation and supply of electric power.

United Envirotech Water (Changyi) Co. Ltd

January 4, 2018

CITIC Envirotech Ltd. (SGX:CEE) entered into an agreement to acquire the remaining 15% of United Envirotech Water (Changyi) Co. Ltd for $5.5 million. United Envirotech operates industrial waste water treatment plants and water supply plants in China. Singapore-based CITIC operates in Malaysia, China, and the United States and is involved in the design, fabrication, installation, and commissioning of membrane-based water and wastewater treatment systems.

Vinaconex Water Supply Joint Stock Company

January 4, 2018

Gelex Energy One Member Company Limited acquired an additional 20% stake in Vinaconex Water Supply Joint Stock Company. Gelex Energy One Member Company Limited acquired 10 million shares and after the transaction will own a 24.68% stake in Vinaconex, a Vietnam-based utilities company primarily engaged in the supply of clean water to the southwestern region of Hanoi City, including Thanh Xuan, Hoang Mai, Cau Giay, and Ha Dong provinces.

Saigon Water Infrastructure Corporation (HOSE:SII)

January 10, 2018

Saigon Water Infrastructure Corporation (HOSE:SII) agreed to acquire a 49% stake in Cu Chi Water Supply Joint Stock Co for $48,000. Based in Ho Chi Minh City, Vietnam, Saigon Water Infrastructure Corporation provides water and wastewater services in Vietnam.

Henan Guoyuan Water Affairs Co. Ltd.

Henan Guoyuan Water Affairs Co. Ltd.

Henan Guoyuan Water Affairs Co. Ltd. acquired Wuzhi County Minsheng Water Affairs Co. Ltd. for $11 million. Henan Guoyuan Water supplies water in Henan Province, China and Wuzhi County Minsheng Water supplies water in Wuzhi county. The company is based in Jiaozuo, China.

Samantha Springs, L.P.

January 16, 2018

Samantha Springs, L.P. acquired Monticello Spring Water Company from Julie and Bubba Voigt family. Based in Fort Worth, Texas, Monticello is a 100-year old water bottling company. Samantha Springs offered bottled water delivery services in the Dallas/Fort Worth area.

Biogen (UK) Ltd

Biogen (UK) Ltd acquired a 1.5MW anaerobic digestion facility in Millerhill, Edinburgh from Kelda Water Services Limited. Kelda Water operates water and wastewater contract operations and infrastructure solutions in England, Scotland, Wales, and Ireland, producing drinking water and offering water and wastewater services. Biogen operates commercial scale anaerobic digestion plants in the UK.

Stallion Oilfield Services Ltd.

January 31, 2018

Stallion Oilfield Services Ltd. acquired all assets of Al's Water Service from Al's Water Service, a provider of potable water transportation and services to the oil, gas, and mining industries.

Public & Private Financings

Évaluation Technologique Ingénierie & Applications SA

Évaluation Technologique Ingénierie & Applications SA

Évaluation Technologique Ingénierie & Applications SA announced that it has undertaken in a private round of funding. The transaction included participation from Fondation Race for Water and Blue Orange SAS. Évaluation Technologique manufactures and markets thermal treatment equipment for the food and chemical industries. Blue Orange SAS is a venture capital arm of Suez Environnement S.A. and Fondation Race for Water is an organization dedicated to water preservation.

Majik Water LLC

Majik Water LLC announced that it has entered into an agreement for future equity with investors at a price of $1 per share for the gross proceeds of a minimum of $40,000 and a maximum of $107,000. The company has a target of issuing 40,000 shares with an acceptance of over subscription on a first come first serve basis. The crowdfunding is done in reliance on section 4(a)(6) of the Securities Act and pursuant to Regulation CF. Majik Water harvests drinking water from the air using hydrophilic materials to capture water. The company is based in Nairobi, Kenya.